Thread by @corymitc

I've been #daytrading the $EURUSD for 14 years.

Here are 10 key day trading insights that have kept me in the game.

Including strategies, ways to improve, position-sizing, making rapid trades on the fly, and more.

A thread👇

1. When day trading #forex, I only trade the EURUSD.

It has enough movement, the smallest spread, and the biggest volume (which translates to less slippage on orders).

No need to waste time or effort on anything else.

Specialize and get good at one thing.

2. Use an ECN broker for day trading.

The spread should be under 0.5 pips & the commissions under $5/standard lot.

$0 to $3 commissions and under 0.4 pip spread is much better.

Bigger spreads and commissions create a disadvantage...

I do know #daytraders using 1 pip+ spread (no commissions).

It can be done.

You just need to be more selective on trades and make sure there's enough movement for price to reach your target when factoring in the spread.

3. Set yourself up for making quick trades.

A stop loss & target should go out with each entry.

It's too time-consuming to put out orders manually.

MT4/5 has a handy tool.

Right-click the chart. Select "Market Depth"...

Input SL and target in fractional pips.
20 is 2 pips, 80 is 8 pips, etc.

Input position size in standard lots.
1 is a standard lot of 100K
0.1 is a mini lot (10K)
0.01 is a micro lot (1K)

Click buy or sell (market) and SL and target are auto-deployed.

4. Set the y-axis every day before trading.

I set mine to the daily average range for the last 5 weeks. I check this # on Monday and keep it for the week.

I do this because I want to see, at a glance, how today's movement compares to average. Patterns look the same day to day.

5. Take daily screenshots of your trades. After trading, write notes and highlight mistakes, etc.

Take a screenshot every day. Save them. Review them weekly/monthly or at scheduled times.

Keep them. Having a historical database of trades and market conditions comes in handy.

6. Risk 1% or less of the ACCOUNT BALANCE on each trade.

As SL changes our position size changes, yet risk to the account stays the same.

Calculate position sizes for common SL sizes based on your account value, write them down before trading.

I write down position sizes based on 0.5 pip SL increments.

I want to know what my position size is for a 2, 2.5, 3, 3.5, 4, 4.5, 5, 5.5, and 6 pip stop loss, BASED ON MY ACCOUNT VALUE WHEN I START TRADING FOR THE DAY.

I use those position sizes all day depending on SL size...

For example, 1% of $5000 account means we can lose up to $50/trade.

If your SL is going to be 4 pips, you can calculate your position size:

$Account Risk / Trade Risk x Pip Value = Position Size

$50 / (4pips x $10) = 1.25 lots

Can also use an online position size calculator..

Leverage is used here: 5K in the account but trading a 125K position.

Leverage is a double-edged sword. This is why a SL must be used to keep the loss to less than 1% of the account.

DON'T hold day trades through med. or high-impact news announcements.

7. Less than 15 pips of movement in the last 2 hours means I'm very cautious.

Less than 10 pips in last 2 hours, I'm likely not even watching.

Knowing when not to trade is as important as knowing when to take a trade. Don't trade in crap conditions when the price isn't moving.

8. Strategies: Double Pump (DP)

Relatively simple trending strategy. The chart shows a DP example based on the article below.
tradethatswing.com/the-double-pum…

If risking 1% per trade (that's 1R), making 2.5R means making 2.5% on the account.

9. Strategies: Rounded Top and Bottom (RB, RT on chart)

One of my favorites.

Covered in this thread:

https://twitter.com/corymitc/status/1488563260110499840

Here is a recent example:

10. When trading, "commentate" the price action.

I verbalize what has to happen to take a trade, or why there are no trades right now.

This gets me ready to pounce on good trades, and stay out when conditions aren't ideal.

I'm constantly reiterating what I need to do/not do...

Here are some things I commentate:
-What strategy could appear?
-How is overall movement?
-Is there enough movement for target?
-Is this a valid setup forming?
-Does the movement (reward) justify the SL size (risk)?
-Any red flags?
-Ranging, stuck, or trending?
And so on.

Hopefully, you got something out of this. If you did, give me a follow @corymitc for more insights

Also check out my EURUSD Day Trading Course which covers additional strategies and a lot more day trading insights.
tradethatswing.com/product/the-eu…

Lots of free info on the site as well.